CBDT Extends Processing Time for Delayed ITRs Filed with Condonation

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  • Last Updated on 27 June, 2025

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CBDT condonation delayed ITR processing

Circular No. 07/2025, dated 25-06-2025

The Central Board of Direct Taxes (CBDT) has issued a directive relaxing the time limit for processing valid income tax returns (ITRs) that were filed electronically following condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961.

1. Context and Reason for the Relaxation

Several taxpayers had filed belated ITRs pursuant to orders issued by the Competent Authority condoning the delay under Section 119(2)(b). However, it has been observed that technical limitations prevented the processing of such returns within the prescribed time frame.

This delay has resulted in numerous taxpayer grievances, particularly in cases where refunds are due but remain unprocessed solely due to the lapse in processing timelines.

2. Relief for Returns Filed on or Before 31st March 2024

To alleviate the hardship faced by affected taxpayers, the CBDT has now directed that:

  • All valid ITRs filed electronically on or before 31st March 2024 under a valid condonation order shall be processed, even if the time limit for issuing intimation under Section 143(1) has expired.

This move aims to ensure that genuine taxpayers are not denied refunds or face procedural delays due to systemic limitations.

3. Exclusions from the Relaxation

The relaxation shall not apply in cases where:

  • Assessment,
  • Reassessment, or
  • Revision of income has already been completed for the relevant assessment year.

This safeguard ensures that the relaxation does not interfere with completed proceedings under the Act.

4. Extended Deadline for Sending Intimations

As per the directive:

  • The intimation under Section 143(1) for such returns must be sent to the concerned assessee by 31st March 2026.

This extended window provides ample time for the Income Tax Department to process eligible returns and address pending refund claims.

5. Conclusion

This proactive step by the CBDT reflects its commitment to taxpayer facilitation and grievance redressal. By allowing the processing of delayed but valid returns, the directive is expected to benefit a significant number of taxpayers who were otherwise stuck in procedural limbo due to expired timelines.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied